CHINESE power generation group SDIC is pressing ahead with plans to launch an offering of global depositary receipts (GDRs) in London under a link with the Shanghai Stock Exchange, defying a dismal season for stock listings in Europe.

The offering would include newly issued GDRs representing underlying A shares in the firm, SDIC said yesterday.

If successful, SDIC will make its London debut in December, becoming the second Chinese firm to float in Britain under the Stock Connect link with the Shanghai exchange.

It would also be a bright spot for the London Stock Exchange, which has seen a number of initial public offerings (IPOs) cancelled or postponed amid market uncertainty.

Reuters reported in July that SDIC had hired banks to list in London via the Shanghai-London Stock Connect program, in a boost for Britain’s status as a financial center ahead of Brexit.

Shanghai-listed SDIC Power, which has a market value of US$7.9 billion, is looking to raise between US$600 and US$800 million from the sale, a source familiar with the deal said.

The proceeds will be used to help expand SDIC’s renewable energy business overseas and pay down offshore debt.

The company, which invests in, constructs and operates electric power plants, has a presence in Britain through its ownership of Red Rock Power, a Scotland-based wind farm operator.

On July 3, SDIC said its board had approved a resolution to sell its GDRs in London.

“Through this offering, we will gain better access to the international capital markets,” chairman Zhu Jiwei said.

Chinese brokerage Huatai Securities finalized its London listing in June, raising more than US$1.5 billion, but there had been concerns that not many firms would follow its lead.

Britain wants to offer Chinese firms an attractive trading environment as it sees cooperation with China as critical after Brexit. Earlier this year it launched a much-anticipated link with the Shanghai exchange. (SD-Agencies)